Korean MMO publisher NCsoft today released its fiscal results for the third quarter, revealing sales of KRW 80.0 billion (US$88.3 million), operating income of KRW 9.7 billion (US$10.7 million), and net income of KRW 10.1 billion (US$11.2 million). Sales were up five percent but net income dropped five percent and operating income was down eight percent – all on a quarter-over-quarter basis. On a year-over-year basis, NCsoft's net income actually dropped 21 percent, operating income dropped 44 percent and sales fell six percent.

The publisher's popular Lineage franchise continues to be a major driver. Sales during Q3 for Lineage totaled KRW 23.7 billion (US$26.2 million), and sales for Lineage II were even greater at KRW 32.4 billion (US$35.8 million). City of Heroes/City of Villains also contributed KRW 5.7 billion (US$6.3 million) and Guild Wars contributed KRW 13.0 billion (US$14.4 million). NCsoft noted that Lineage and City of Heroes/City of Villains sales dropped seven percent and 10 percent, respectively. Lineage II saw a minor increase (one percent) while Guild Wars increased by 57 percent.

In terms of regions, 55 percent of sales were domestic (which amounted to US$47.9 million). The other 45 percent was broken down as follows: US$15.1 million in North America, US$9.0 million in Europe, US$8.6 million in Japan, US$2.9 million in Taiwan, and royalty income of US$4.8 million. For Europe in particular, NCsoft pointed to the release of Guild Wars: Eye of the North as the primary reason for 81 percent growth in sales over the previous quarter. Taiwan's 15 percent sales growth over the previous quarter was attributed to an increase in Lineage II sales.

"During the third quarter, sales in North America and Europe rose with the successful launch of the Guild Wars expansion pack. We expect to see an increase in fourth quarter sales with the newly launched Richard Garriott's Tabula Rasa. Aion is in a closed beta testing process, and user responses are very positive," commented NCsoft CFO JaeHo Lee.

In addition to the financial update, NCsoft also formally launched a new studio in Mountain View, California. This news immediately follows the announcement from developer Cryptic Studios that it had sold its City of Heroes/Villains property to NCsoft. The Mountain View studio will be "built around key members of the City of Heroes team from NCsoft and Cryptic Studios including the art, programming and design team leads," the company said. NCsoft added that it's beginning "a renewed push to further develop the City of Heroes property."

Brian Clayton, NCsoft executive producer, will serve as the manager of the new studio. "Our plans are clear. We are now in a position to make a major reinvestment in the City of Heroes product line. With our existing Cryptic and NCsoft team as the core, we will be able to run our current service without any interruption to our players, expand our studio to deliver triple-A content, and take City of Heroes to new heights," he said.

NCsoft said that it will soon formally announce plans for the City of Heroes IP; in the meantime, the publisher hinted that the plans will include expansions and sequels.